It is a sombre day for Tasmania's north east with the closure of the Tonganah sawmill at Scottsdale, which processed its last logs yesterday.

Workers have spoken of their anger and disappointment as a skeleton staff completes the final shift this morning.

Scottsdale's lost up to 140 jobs because of Gunns' decision to close the mill, citing insufficient log supply, 15 or so workers missed out on redundancies.

Union representative, Mark Blackwell, says some of them are being offered counselling.

"These's a lot that are angry, they wanted out, they wanted a fresh start," he said.

Economic impact

A truck driver who transports chips from the mill, Matthew Cassidy, says the closure will have an effect on the wider economy.

He says other transport companies and contractors involved with the mill, and local businesses in the Scottsdale region, will notice the loss.

"It's all the local businesses around the town, they haven't got the money flow so they're going to suffer too," he said.

"It's an ongoing thing, I don't know where it's going to stop."

Chris Sturzaker received a redundancy and is now looking for other work in the region.

"You miss all your mates and that sort of stuff but the environment, the working environment here is going to change for the worst anyway," he said.

60-year old Frank Baldwin has worked at the mill for almost 38 year, and says it will be a very sad day.

He says luckily, he was successful in getting a redundancy.

Mr Baldwin feels for younger workers who will have to find new work to support their families.

For his own part, he says he will turn his hand to anything.

"I'm only going to try and pick up a bit of casual work, like mowin' lawns, you know, anything I can grab hold of, wash windows, anything."

A farewell barbecue will be held at the Tonganah site this afternoon.

Pulp mill alternative

Gunns is disappointed the proposed Bell Bay pulp mill is not operating yet because axed Scottsdale sawmill workers could have been considered for positions there.

The company's spokesman, Greg L'Estrange, says workers from the Tonganah mill would be high on the pulp mill recruitment list.

"If the pulp mill was operating we'd have no redundancies and John Gay is on the record of basically saying that if the mill had been operating he would have put a bus on to bus the people from Scottsdale to the pulp mill," he said.

"We have a timing issue, we do have some positions available for people around the business at the moment."

Mr L'Strange says the axed sawmill workers could still have a future with Gunns if the expansion of its rotary veneer mill goes ahead at Evandale, south of Launceston.

"The timing makes it difficult given the planning process at Evandale, we haven't got approval for that at this stage, it's probably another 18 months in the making.

"So we'll be looking, and hopefully those people will want to come back and work with us at that time."

Mr L'Strange says the Tonganah mill couldn't be transformed into a veneer mill because of logistics, Scottsdale is not anywhere near the port.